BILL NUMBER: SB 2053	CHAPTERED  09/19/00

	CHAPTER   509
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 17, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	AMENDED IN ASSEMBLY   JUNE 20, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 2000
	AMENDED IN SENATE   APRIL 27, 2000

INTRODUCED BY   Committee on Governmental Organization (Senators
Perata (Chair), Burton, Chesbro, Dunn, Hughes, Johannessen, Johnson,
Karnette, Lewis, and O'Connell)

                        FEBRUARY 25, 2000

   An act to amend Sections 8880.12 and 8880.56 of the Government
Code, relating to the California State Lottery.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2053, Committee on Governmental Organization.  California State
Lottery.
   (1) The California State Lottery Act of 1984, an initiative
measure approved by the voters at the November 6, 1984, general
election (hereafter the act), provides that the term "Lottery Game"
as used therein means any procedure authorized by the California
State Lottery Commission whereby prizes are distributed among persons
who have paid, or unconditionally agreed to pay, for tickets or
shares which provide the opportunity to win such prizes.
   This bill would instead provide that for purposes of the act,
"Lottery Game" means any procedure authorized by the commission
whereby prizes are distributed among persons who have paid, or who
have unconditionally agreed to pay, for tickets or shares which
provide the opportunity to win those prizes.
   (2) The act requires that, notwithstanding any of its other
provisions, to ensure the fullest competition with respect to
contracts or procurement by the lottery, the commission adopt and
publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than
$100,000, and establish specified bidding and contracting standards
and procedures applicable to certain subcontracts with disadvantaged
small business concerns, as defined.
   This bill would make these competitive bidding procedures and
contracting requirements applicable to any subcontract involving an
expenditure of more than $100,000, and would direct the commission to
establish, as part of its bidding procedures for general contracts,
subcontracting guidelines that implement this requirement.
   (3) The act provides that none of its provisions may be changed
except to further its purpose by a bill passed by a 2/3 vote of each
house of the Legislature and signed by the Governor.
   This bill would declare that its provisions further the purpose of
the act.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8880.12 of the Government Code is amended to
read:
   8880.12.  "Lottery Game"
   "Lottery Game" means any procedure authorized by the commission
whereby prizes are distributed among persons who have paid, or who
have unconditionally agreed to pay, for tickets or shares which
provide the opportunity to win those prizes.
  SEC. 2.  Section 8880.56 of the Government Code is amended to read:

   8880.56.  (a) Notwithstanding other provisions of law, the
director may purchase or lease goods and services as are necessary
for effectuating the purposes of this chapter.  The director may not
contract with any private party for the operation and administration
of the California State Lottery, created by this chapter.  However,
this section does not preclude procurements which integrate functions
such as game design, supply, advertising, and public relations.  In
all procurement decisions, the director shall, subject to the
approval of the commission, award contracts to the responsible
supplier submitting the lowest and best proposal that maximizes the
benefits to the state in relation to the areas of security,
competence, experience, and timely performance, shall take into
account the particularly sensitive nature of the California State
Lottery and shall act to promote and ensure integrity, security,
honesty, and fairness in the operation and administration of the
lottery and the objective of raising net revenues for the benefit of
the public purpose described in this chapter.
   (b) Notwithstanding any other provision of this chapter, the
following shall apply to contracts or procurement by the lottery:
   (1) To ensure the fullest competition, the commission shall adopt
and publish competitive bidding procedures for the award of any
procurement  or contract involving an expenditure of more than one
hundred thousand dollars ($100,000).  The competitive bidding
procedures shall include, but not be limited to, requirements for
submission of bids and accompanying documentation, guidelines for the
use of requests for proposals, invitations to bid, or other methods
of bidding, and a bid protest procedure.  The director shall
determine whether the goods or services subject to this paragraph are
available through existing contracts or price schedules of the
Department of General Services.
   (2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand dollars
($100,000).  The commission shall establish, as part of its bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.
   (3) The provisions of Article 1 (commencing with Section 11250) of
Chapter 3 of Part 1 of Division 3 apply to the commission.
   (4) The commission is subject to the Small Business Procurement
and Contract Act, as provided in Chapter 6.5 (commencing with Section
14835) of Part 5.5 of Division 3.
   (5) In advertising or awarding any general contract for the
procurement of goods and services exceeding five hundred thousand
dollars ($500,000), the commission and the director shall require all
bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business concerns.  The subcontracting plans
shall delineate the nature and extent of the services to be utilized,
and those concerns or individuals identified for subcontracting if
known.
   It is the intention of the Legislature in enacting this section to
establish as an objective of the utmost importance the advancement
of business opportunities for these small business concerns in the
private business activities created by the California State Lottery.
In that regard, the commission and the director shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by socially and economically disadvantaged small
business concerns in its procurement programs.
   By July 1, 1986, the commission shall adopt proposal evaluation
procedures, criteria, and contract terms which are consistent with
the advancement of business opportunities for small business concerns
in the private business activities created by the California State
Lottery and which will achieve the most feasible and practicable
level of participation by socially and economically disadvantaged
small business concerns in its procurement programs.  The proposal
evaluation procedures, criteria, and contract terms adopted shall be
reported in writing to both houses of the Legislature on or before
July 1, 1986.
   For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the commission
to be disadvantaged.
   The commission shall report to the Legislature by July 1, 1987,
and by each July 1 thereafter, on the level of participation of small
businesses, socially and economically disadvantaged businesses, and
California businesses in all contracts awarded by the commission.
   (6) The commission shall prepare and submit to the Legislature by
October 1 of each year a report detailing the lottery's purchase of
goods and services through the Department of General Services.  The
report shall also include a listing of contracts awarded for more
than one hundred thousand dollars ($100,000), the name of the
contractor, amount and term of the contract, and the basis upon which
the contract was awarded.
   The lottery shall fully comply with the requirements of paragraphs
(2) to (5), inclusive, except that any function or role which is
otherwise the responsibility of the Department of Finance or the
Department of General Services shall instead, for purposes of this
subdivision, be the sole responsibility of the lottery, which shall
have the sole authority to perform that function or role.
  SEC. 3.  The Legislature finds and declares that this act furthers
the purpose of the California State Lottery Act of 1984 enacted by
Proposition 37 at the November 6, 1984, general election.
